Suppose That a Country Has a Depreciation Rate of 3

Multiple Choice

Suppose that a country has a depreciation rate of 3 percent, a national savings rate of 6 percent, and growth in net exports of -4 percent. Assume that the savings are efficiently transformed into investment, what is the investment rate for this country?

A) 2 percent
B) 10 percent
C) -1 percent
D) 5 percent